Cup and Handle vs Double Bottom
A detailed side-by-side comparison of the Cup and Handle and Double Bottom chart patterns.
A rounded bottom (cup) followed by a small pullback (handle) before a breakout, developed by William O'Neil.
Best for
Growth stock breakout entries
A W-shaped reversal where price tests support twice before breaking the neckline.
Best for
Bullish reversal at established support
Key Differences
- Cup and Handle is a continuation pattern; Double Bottom is a reversal pattern
- Cup is rounded/U-shaped; Double Bottom is V/W-shaped
- Cup and Handle forms over weeks to months; Double Bottom can form faster
- Handle provides an additional entry opportunity in Cup and Handle
- Cup and Handle was specifically designed for stock breakouts
When to Use Cup and Handle
Use Cup and Handle when you see a rounded bottoming formation in an uptrend, followed by a small downward drift (handle). Buy the breakout above the cup's rim with a stop below the handle.
When to Use Double Bottom
Use Double Bottom when price tests a sharp support level twice, forming a W shape. Buy the neckline breakout with a measured move target equal to the pattern's height.
Frequently Asked Questions
Can a Cup and Handle fail?▾
Yes, if the handle drops more than 50% of the cup's depth, or if the breakout fails on low volume. The ideal handle should be a shallow pullback of 10-15% of the cup depth.
Which produces larger moves?▾
Cup and Handle typically produces larger moves because it forms over a longer period, allowing more accumulation. The measured move target for a cup and handle is the cup depth added to the breakout point.